The housing industry seems to be stabilizing slowly but surely so if you are in the market for a new house, there are some things you should consider during the negotiation process. You certainly do not have to pay what the seller is asking right up front if you are looking to get the best deal for you.
Provided you have an excellent credit rating and can get pre-approved financing, you’ll have room to employ negotiation tactics to ensure you get the best deal on the home you want to buy. Those with a poor financial background may not have as much wiggle room so it is best to improve your financing options and your credit score before looking into homeownership.
Here are the negotiation considerations to make during the buying process:
Closing Costs
Sellers often pay the closing costs, especially for a first-time buyer. Right now, sellers are looking to sell and they might be more open now to paying the closing cost for you. It certainly does not hurt to ask.
Closing Dates
There are all kinds of situations that can crop up during the home buying process. For instance, the current owner may need a time extension to move or you may need to take possession of the house fast. In either case, you can try to negotiate a deal that works to your benefit. Some sellers will agree to pay for a buyers housing expenses (rent extension, hotel costs) for delaying the process. Other sellers may be willing to let you move in and rent the place if you are not yet ready to sign on for the mortgage.
Maintenance and Repairs
Homes on the market will need to be inspected. The seller is typically responsible for major repairs that are necessary but as a buyer, you can negotiation an allowance for the cost of other more minor repairs to be done by the seller as well. Some points might b the replacement of old flooring or a new paint job. The only time this will not work is when the owner has chosen to sell the house ‘as in’.
Building Negotiations
If you are purchasing a ‘to-be-built’ home, don’t cancel out the opportunity to negotiate details with the builder. You may want to see if they would be willing to finish a basement, add a deck, or other finishes as part of the deal. Not all builders will go for the idea but if you have thoughts, it’s best to share them. You might not get the full deal but even a discount in cost can be a big savings.